The ICE Futures canola market was stronger on Friday, touching fresh highs in the new crop months.
Updated supply/demand estimates from the United States Department of Agriculture were neutral to bearish for the grains and oilseeds, but soybeans and soyoil still posted solid gains which provided spillover support for canola.
Tight old crop supplies and the need to ration demand, along with uncertainty over new crop production, also underpinned the Canadian oilseed.
However, ideas that canola was looking overpriced at current levels did temper the advances to some extent.
About 13,809 canola contracts traded on Friday, which compares with Thursday when 22,410 contracts changed hands. Spreading accounted for 8,200 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, posting solid gains despite a neutral-to-bearish supply/demand report from the United States Department of Agriculture.
Larger-than-expected world soybean ending stocks in today’s report initially put some pressure on soybeans, but tightening U.S. supply projections were enough to provide support.
The world soybean carryout was forecast at 89.6 million tonnes, which was down slightly from last month, but still about a million tonnes above average trade guesses.
U.S. ending stocks were lowered by 25 million bushels, to 260 million.
Brazil’s soybean crop was estimated at 125 million tonnes by the USDA, down two million from last month and in line with expectations. They left Argentina’s crop unchanged at 43.5 million tonnes.
CORN was also up on the day after initially dipping in reaction to the USDA report.
U.S. corn ending stocks for 2021/22 were pegged at 1.44 billion bushels, unchanged from March. The world corn carryout was pegged at 305.5 million tonnes by the USDA, up by 4.5 million from last month.
Brazilian corn production was raised by two million tonnes, to 116 million tonnes.
WHEAT futures were higher amid ongoing uncertainty over the conflict in Ukraine. Quality concerns for the U.S. winter wheat crop were also supportive.
World wheat ending stocks were pegged at 278.4 million tonnes by the USDA, which were below average trade estimates calling for the stocks to hold steady at 281.5 million. However, projected U.S. wheat ending stocks were up 3.8 per cent on the month, at 678 million bushels.
